The computer systems of today have shown a remarkable evolution from their earlier applications of running simple programs for mathematical computation. Over the course of a few decades, innovations in software technology have made possible the prediction of certain events based on analysis derived from a vast data repository. This enormous amount of data is described by a term called ‘big data’, and it has now become a core element in almost every business decision. Every business is now analyzing big data techniques that would give them maximum returns for their investments while fulfilling the business requirements.
One of the primary reasons why businesses benefit from big data is that they have incredible amounts of organisational data. In its recent report published in April 2018, Deloitte has suggested that not only does big data have the potential of improving business value, but it also increases its overall effectiveness. Be it big or small, businesses generate data whenever customer interaction takes place. When harnessed correctly, this data has the potential of giving businesses essential insights. As a result, there is now a requirement of data analysts in almost every enterprise, most of whom hold big data certifications. Companies now view big data as an asset which serves them a variety of functions across the domains of banking, manufacturing, retail, consulting, and in hiring:
When it comes to financial institutions like banking, big data has proven to be extremely effective. Not only does it aid them in predicting consumer behaviour, but predictive analysis – which is the use of historical and present data for the prediction of trends -also allows them to deliver superior customer experience. For example, if a corporate bank has an active social media or website and some of its customers get married, big data makes it possible for the bank to get the update instantly. Banks can thus use this information to congratulate the newlyweds while also suggesting to the customers the benefits of getting a joint account. In this regard, big data has not only enabled the bank to deliver a superior customer experience, but it has also helped them to take steps towards bringing in new business opportunities.
Manufacturing is an exhaustive process which consists of many sub-processes, each of which requires extensive planning and supervision. As it involves data organisation at every stage, big data has come up as a useful tool for refining the quality of products while also systemising the detection of defects in the products. For instance, by streamlining processes, big data has made it easier for manufacturers to forecast inventory management. Inventory managers can now make better decisions about which materials to order in surplus while also predicting which items would run out faster. Similarly, incorporation of big data at every stage of manufacturing results in a smoother and more efficient manufacturing process and also helps businesses in forecasting the output of large orders.
Retail is an excellent example of a business sector that has shown exponential growth since the introduction of big data, particularly in e-commerce. Retail giants like Amazon and e-bay have made prodigious success by the adoption of big data in the early stages of their operation. Not only does big data provide retailers with extensive insights into the buying behaviour of consumers, but it also predicts upcoming buying trends. This helps retailers in modelling their business campaigns and inventory stock-ups in a manner that appeals most to consumers. In addition to this, the constant input of new data also aids in the analysis of profits and sales, thus enabling the retailers to come up with fresh strategies for meeting new sales targets.
Management consulting is yet another avenue of business that has seen a transformative change with the advent of big data. Majority of key players in the consulting industry like Ernst and Young, Deloitte, McKinsey, etc., now rely on big data as it gives them the tools to analyse behaviour and upcoming trends in various sectors. By making calculated and accurate predictions about the growth and recession phase of a particular business cycle, big data helps businesses determine the upcoming opportunities, and which investment decisions would reap them the best benefits. Big data also helps management consulting firms in running an exhaustive market study, thus allowing them to deliver accurate reports outlining all the factors that would act as key influencers to a particular market.
Be it any business domain; big data has now become the core axis of every decision-making process. Extreme competition has made it necessary for businesses to come up with new and practical strategies that set them apart from their peers. To serve this purpose, big data works as a smart tool not just for the betterment of the business, but for the benefit of all the stakeholders associated with it as well. Be it big or small, effective execution of big data technologies have the potential of taking a business to a stage where it holds authority in its domain. In a nutshell, not only does big data optimizes business processes, but it also supplies them with the necessary strategies that they need for elevating their position in the market.